Following the signing this Wednesday, the president of the CEOE employers’ association opened with a note of applause, highlighting the significance of the fourth state agreement for collective bargaining, the AENC. Present at the ceremony were the heads of CEOE and Cepyme, Antonio Garamendi and Gerardo Cuerva, alongside Unai Sordo and Pepe Álvarez, who lead the CCOO and UGT unions, respectively. The gathering underscored a total wage rise of at least 10 percent across the entire period of the agreement.
The ceremony took place at the Circulo de Bellas Artes in Madrid. Spokespersons from the signatory bodies stressed the agreement’s value for Spain, emphasizing how it supports economic growth, protects workers’ purchasing power in the face of inflation, and helps maintain social peace in the current climate.
Salary Review Clause
Speaking about the moment in the Spanish economy, Pepe Alvarez, secretary general of the UGT, described the agreement as a framework capable of resolving roughly 1,400 collective bargaining negotiations that were still pending. The unions highlighted the inclusion of a salary review clause tied to inflation, albeit with a modest scope: if inflation surpasses the agreed benchmarks of 4, 3, and 3 percent for each year of the three-year term, an extra adjustment could be added. This mechanism is designed to avoid eroding wage power while maintaining stability. The signatories argued that the pact builds both internal and external trust and places the country in a favorable position to attract investment in the years ahead.
Statewide Pact
Garamendi remarked on the signatories’ commitment to a “state mentality,” stressing that the agreement serves the broader good of Spain rather than any single party. He underscored the value of bilateral social dialogue and the responsible stance shown by social actors during this sensitive economic period. He pointed out that such a move does not work against the state but supports social and economic stability.
Unblock 1,400 Contracts
In explaining the significance of the deal, Unai Sordo, the secretary general of the CCOO, noted that the current inflation environment makes a salary agreement of this scale particularly meaningful. To secure the agreement, the unions set aside the goal of restoring purchasing power to levels seen in 2022 and earlier, when inflation ran higher. Sordo emphasized that the signed AENC holds substantial value for the present moment and has the potential to strengthen collective bargaining channels. The largest challenge remains to unlock the 1,400 elite agreements still awaiting resolution, which could help avert potential downside risks if wage growth supports consumer demand.
Flexibility for SMEs
From a business standpoint, the inclusion of a salary review clause that allows for a modest 1 percent adjustment is viewed as a reasonable price to pay to secure an agreement that benefits small and medium-sized enterprises. This approach aims to provide certainty and stability for firms. The president of Cepyme highlighted the flexible nature of the agreement, noting that its provisions can adapt to different sectors, regions, and individual companies. While salary increases under the AENC are not mandatory at the bargaining table, the signatory groups committed to promoting its principles. Cuerva stressed that flexibility is a crucial tool in difficult times and that the pact offers room for adjustments as needs evolve.